In May 2023, the European Securities and Markets Authority (ESMA), the European Banking Authority and the European Insurance and Occupational Pensions Authority issued a report presenting a high-level understanding of greenwashing and discussing the risks it poses. ESMA recently issued a Final Report on Greenwashing (Report) focused on the role of supervision by the relevant E.U. Member States’ national competent authorities (NCAs) in mitigating those risks and how such supervision can be enhanced. The Report, which is based on ESMA’s survey of 29 NCAs, discusses supervision of investment management firms, investment service providers, issuers and benchmark administrators. It also addresses supervisory considerations applicable to all four sectors. This article focuses on the portions of the Report most relevant to fund managers. See our two-part coverage of the International Organization of Securities Commissions’ environmental, social and governance consultation report: “Risk of Greenwashing and Regulatory Approaches” (Aug. 5, 2021); and “Investor Education, Impediments and Recommendations” (Aug. 19, 2021).